Severstal deems the VTB Capital report on Russian steel demand too optimistic.
The analysts believe that from 2019 steel consumption in Russia will grow by 5% per year and will have reached 14 million tons by 2025. The growth will be due to the national projects – creation of infrastructure valued at $170 billion will require 40 million tons of steel within 7 years. VTB Capital believes that Severstal and MMK will take advantage of these projects, as the Russia is the main market for them. Additional income of Russian metal makers could amount to $2 billion. EBITDA will grow by 20%.
But Severstal says, that the steel demand will grow more conservatively, by 2-3% per year. (Ukrainian metal)